## [solution]: You have purchased a futures contract for euros. The contract is

More Details:

 Measurement of performance and financial leverage 2014 2013 Total assets \$ 7,349,000 \$ 6,553,000 Interest expense \$ 115,000 \$ 102,000 Long-term liabilities \$ 1,220,000 \$ 1,239,000 Net income \$ 619,000 \$ 563,000 Sales \$ 8,196,000 \$ 6,996,000 Stockholders equity \$ 3,624,000 \$ 3,221,000 A) compute the following performance measurement ratio for 2014 Asset turnover Return on sales Return on assets Return on equity B) Is the company using financial leverage? If so is the leverage favourable or unfavourable? Explain

2014

(a)Asset turnover=6,996,000/6,553,000

=1.068

Return on sales=563,000/6,996,000

=0.08

Return on assets=563,000/6,553,000

= 0.09

Return on Equity

563,000/3,221,000

=0.175

(b) In relation to the...

Solution details:
STATUS
QUALITY
Approved

This question was answered on: Dec 18, 2020

Solution~00031148033691.zip (25.37 KB)

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

STATUS

QUALITY

Approved

Dec 18, 2020

EXPERT

Tutor